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Forward funding of Extra Care apartments and shared ownership bungalows, Ryde, IOW

  • Forward funding of of 75 x 1-bed and 2-bed new build Extra Care apartments and 27 x 2-bed bungalows for older people in Ryde, Isle of Wight, working with the developer Morgan Ashley
  • Homes England grant of c.£5.0m secured by Funding Affordable Homes Housing Association to support development
  • Start on site achieved in March 2018, target completion date February 2020

Background

This opportunity on the Isle of Wight has arisen through long term discussions with Isle of Wight Council (IoWC) that identified a strong evidence-backed demand for Extra Care housing on the Island. IoWC’s older persons housing strategy focuses on independence, where support and care is provided at home or close to home, as opposed to institutional or residential based care. There is also considerable financial saving to the Council’s adult care budget when compared to care home costs.

The proposed development is for the erection of an Extra Care housing scheme alongside a wider residential development consisting of 55 bungalows and 30 houses. The extra care housing consists of 75 x 1 and 2-bed apartments in a single housing block along with ancillary spaces (including restaurant/café, lounges, scooter/cycle store, assessment rooms, and external car parking spaces). 27 x 2 bed age restricted bungalows, previously earmarked for private sale, will be made available for older people on a shared ownership basis.

Southern Housing will provide housing management and domiciliary care services through a contract procured by IoWC or by direct payments from self-funding individuals.

Morgan Ashley Care Developments are delivering the project and at practical completion will handover the property to Southern Housing Group ready for occupation under the signed lease and a nominations agreement with IoWC.

The scope of the project fits well with the social aims of FAH. A social screen completed in line with the FAH Social Performance Assessment Framework indicated a score of 395 out of 500, well above the hurdle level of 300. The Good Economy Partnership independently undertook a full social assessment, the report confirms that the project delivers a new affordable, independent living option for older people that meets local social need as identified in the IoWC’s Extra Care Housing Strategy. It specifically highlights the innovative feature of the strategy to integrate housing, health and social care commissioning. It concludes that this collaboration will help ease pressures on hospital beds and should help reduce costs of care delivery.

Deal summary:

  • Acquisition through forward funding of 63 x 1-bed and 12 x 2-bed Extra Care apartments; and 27 x 2-bed shared ownership bungalows at Ryde.
  • The transaction will be supported by an affordable housing grant of c.£5.0m from Homes England allocated directly to FAHHA.
  • 20-year Management Lease agreed with Southern Housing Group.
  • Provision of social benefit through the housing and care of older and vulnerable residents in a Council with above national average of older people population.
  • The proposed scheme is aligned with Isle of Wight Council’s Extra Care Housing Strategy and will be subject to a nomination agreement along with revenue contribution towards support costs.
  • Property due diligence and valuation commissions completed by JLL.
  • Legal due diligence completed by Trowers & Hamlin.
  • Start on site achieved in March 2018, target completion date February 2020.

Summary:
This investment facilitates the delivery of Extra Care apartments and bungalows for older people providing significant social benefit by offering greater independence and dignity than institutional care. The Project combines excellent social delivery with an expected robust financial outcome.